Silver ETFs in India faced a sharp decline of up to 5% on Friday, October 23, 2026, tracking weak global bullion prices. The sell-off follows rising US bond yields, a stronger dollar, and climbing energy costs, which collectively reduce the appeal of precious metals.
Indian investors holding silver-linked assets saw a sharp correction on Friday, October 23, 2026, as domestic silver exchange-traded funds (ETFs) fell by up to 5% during the session. Major instruments, including those managed by HDFC, Tata, and SBI, recorded significant intraday losses as the market reacted to a broader slump in precious metal prices globally.
The decline in domestic ETFs mirrors the weakness seen in international markets. Silver, often viewed as both a store of value and an industrial metal, has struggled recently due to shifting economic conditions in the United States. When US bond yields and the US dollar rise, they often make non-yielding assets—those that do not pay interest, like silver and gold—less attractive to global investors. With market expectations around interest rates changing, capital has been moving away from precious metals.
Adding to the pressure is the energy sector. Brent crude oil prices have climbed to $113.50 per barrel, while West Texas Intermediate crude traded near $99.73 per barrel. Higher energy prices increase operational costs for businesses, which raises concerns about future industrial demand for silver. Unlike gold, which is primarily held for investment, a large portion of silver is used in manufacturing electronics, solar panels, and other industrial applications. If production costs rise and global economic activity slows, the demand for silver could face headwinds.
On the domestic front, the Multi-Commodity Exchange (MCX) reflected this negative sentiment. The December silver futures contract settled 2.27% lower, ending the day at ₹1,95,064 per kilogram. Internationally, spot silver prices pulled back to roughly $53.45 per ounce.
For investors, this volatility highlights the high correlation between Indian silver ETFs and global bullion prices. Domestic funds generally track these international movements closely, meaning that stress in the US financial environment or changes in global commodity sentiment often manifest instantly on Indian exchanges. Moving forward, the most important factors for investors to track are the US dollar index and movements in US bond yields. If these indicators continue to show strength, volatility in silver prices may persist, as the market balances inflation risks against the cost of holding precious metals.